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Should I downgrade to iOS 5.1.1 from 7.0.2 or just wait until an untethered jailbreak is released? Reason why 5.1.1 is because that's the latest software that I have my SHSH blobs (Apparently I don't have 6.1.1 even though I was jailbroken on 6.1.1)

Pros of iOS 7: Im updated with the latest software (I know there's 7.0.4, but updated in iOS 7 in general) and I like the way the interface, apps and lockscreen look and plus the new features

Cons: It's REAAAALLLY Laggy and there's no Jailbreak

Pros of iOS 5: There's an untethered jailbreak and I believe it would make my phone go faster.

Personally, I wouldn't put iOS 7 anything on an iPhone 4. You're probably right about it slowing the phone down. My wife's iPhone 4 is still running iOS 5x and it's doing fine. I put iOS 7 on my newer iPad and I like it but that's a lot different than an iPhone 4. If you had an iPhone 5 then I would say update it to iOS 7x.

I have iOS 7 on my iPhone 4 and it had exactly the opposite effect: it got very noticeably speedier. I suspect this is due to me having used the upgrade occasion to clear out apps I don't use anymore and thus free up some space.

I suspect that you might be low on operating space, which would explain why your impression of iOS is so different. Try clearing some room and see if that makes a difference.

I have iOS 7 on my iPhone 4 and it had exactly the opposite effect: it got very noticeably speedier. I suspect this is due to me having used the upgrade occasion to clear out apps I don't use anymore and thus free up some space.

I suspect that you might be low on operating space, which would explain why your impression of iOS is so different. Try clearing some room and see if that makes a difference.

Exactly the same for me. I've got a 4S and its fine on that but my other half has a bog standard 4. We cleared all the crud off, installed IOS 7 and it runs without issue!